The tax is introduced after the French parliament passed a law in June aimed at regulating so-called ultra-fast fashion companies, known for selling large quantities of lower-quality clothing at the lowest prices.
Read more Former head of the EC representation in Lithuania Marius Vaščega joined Kęstutis Budrys’ team
This measure is taken as Paris tries to rein in Asian e-commerce giants, including Shein, Temu, and AliExpress, whose popularity in France has sharply increased in recent years.
“The harmful impact of ultra-fast fashion on our environment and our economy is well known and documented,” said Delegate Minister for Ecological Transition Mathieu Lefevre on Friday, when detailed information about the new measure was announced.
According to this legislation, “ultra-fast fashion” will be determined based on two criteria: the quantity of clothes placed on the market and the cost of repairing clothes compared to their purchase price.
The tax per unit will be set according to a defined scale, depending on how each product is rated according to both criteria.
For example, in 2026, companies will pay a 50-cent tax for underwear classified as “ultra-fast fashion,” which will increase to two euros for T-shirts, nine euros for jeans, and 12 euros for jackets.
By 2030, the tax per unit could reach up to 19.50 euros, although a 50% cap of the product price before taxes will still apply.
Lefevre’s office reported that a tool is currently being developed to independently collect data instead of relying solely on companies’ declarations.
Read more One person died and 11 were injured in a car bomb explosion near the Colombian police station
Shein declined to comment to the news agency AFP on this matter. Meanwhile, Temu and AliExpress have not yet responded to requests for comments.
This measure has already faced criticism regarding which retailers it will affect.
Lefevre’s office stated in July that the tax will not apply to retailers such as H&M or Zara, which sparked talk that this measure seems to protect European and French companies.
French officials have repeatedly said that Shein, Temu, and AliExpress are, in their view, the main promoters of the spread of “ultra-fast fashion.”
The European Commission has also raised questions about this legislation’s compliance with EU law, but Lefevre’s office said these doubts have been “dispelled” and the measure should not be blocked.
Meanwhile, China warned in July about possible retaliatory actions regarding this French law, which Beijing claims is “discriminatory” and violates trade principles.
According to the French government, imports of small parcels from China to the European Union have already decreased by about 30–40% since the separately established three-euro EU tax on goods sent in such parcels came into effect on July 1.
Read more The United States kicked Russia and China out of Venezuela